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Tuesday, October 18, 2016

Visa dividend hike 18% !

Visa today announced a hike of their quarterly dividend payable in December from 14 cents to 16.5 cents. That is a 17.9% hike. Earlier this year I predicted a 15% hike so this increase is very welcomed.

Visa is my 4th largest position right now. Although it has a low yield I am betting on the super long term. Over time I think their yield % will grow and their dividend increase will be rapid until their business becomes a slow grower like a old blue chip. By then my position in V should have nicely grown to keep up with the huge dividend hikes.

Mastercard has also done incredibly well this year. They have boosted their dividend paid in February of this year to 19 cents from the previous 16 cents. This is 18.8%, very similar to Visa.

This year the largest dividend hikes are from Reynoilds 28% (large increase due to their merger with Lorillard), TJX 24%, Mastercard 19%, and Visa 18% (comparing new quarter payout vs previous quarter payout ).

Right now my portfolio averages 9.26% dividend hike for 2016 and an average yield of 2.71% for an average dividend income increase for this year of 12% (I reinvest all my dividends). This 12% increase in income assumes I do not contribute any of my own money further into investments. My income is growing at a much faster rate due to my periodic contributions.

I am still waiting for Starbucks and Becton Dickinson to announce their hikes this year. I predict Starbucks at 15% and BDX at 10%.

Below I chart my dividend increase table for all my current positions. None of my positions decreased their dividend this year.

5 comments:

Loved seeing that hike from V. Like you I've got SBUX and BDX in my portfolio and fully expect 10%+ raises from both. Just curious if your average dividend raise is a simple average or a weighted one. A weighted one gives a better picture of what your income actually increased. Anyways all the best and it looks like you've had a fantastic year thus far.